Recent reports from local sources have indicated that some foreign investors are quitting operations in Ethiopia due to chronic foreign currency shortage in the country to import products.
A company owned by Ethiopian-born Saudi Billionaire, Mohammed Alamudi, is among those affected by the problem.
Moha Soft Drinks factory is moving in the direction of closing down all its operations in Ethiopia, according to a report by The Ethiopian Reporter Published on November 25, 2023.
If it is happening, it will negatively impact its huge work forces across all the sites in Ethiopia. Financial struggle for many families has been worsening in Ethiopia and the families of employees who are losing their jobs will certainly impact the families.
The company does not seem to have a problem selling its products. The issue is rather inability to supply the market due challenges in the production process. An anonymous informant told the source “Moha has been unable to meet consumer demand for the past four months.”
The product that is currently in the market is either a fake or one whose expiry date has passed according to the informant. There was no report from other sources whether government regulatory bodies recalled the expired products.
The main problem the company has been facing was foreign currency needed for importing materials for its operation including bottles , ingredients needed for soft drinks and machineries.
Moha Soft Drinks Industry Share company has been producing Pepsi Cola Products and Mineral water for nearly thirty years since 1996 and the number of plants in the country reached eight.
The source cited its informant to report that “More than 8,000 employees have lost or resigned from their jobs at Moha over the past year.” However, General manager of the company, Getachew Birbo, reportedly declined to respond to queries from Ethiopian Reporter regarding the situation.
Two years of devastating war between Abiy Ahmed’s Federal government and the Tigray People’s Liberation Front (TPLF) is said to have drained the struggling Ethiopian Economy. When the country emerged from it following the Pretoria Agreement in November 2022, there was hope that the government would focus on reconstruction efforts and economic recovery. What rather happened is that the government started another war in one of the devastated regions from the two years war – Amhara region. The second most populous region of the country reported this year that it was unable to collect enough taxes as the economy in the region is devastated by the war.
Join the conversation. Follow us on twitter @zborkena to get the latest Ethiopian News updates regularly. Subscribe to YouTube channel To share information or for submission, send e-mail to firstname.lastname@example.org